Federal Reserve Is Cautious on Housing and Job Growth

Richard Suttmeier submits: Recordbreaking Delinquencies and Foreclosures The Federal Reserve was worried about the fragile recovery in the housing market with the home buyer tax credits expiring April 30th. We saw mortgage applications drop 27.1% for purchases last week, which is a clear sign of this dilemma.Complete Story »

It is easy to recognize that the FOMC meeting is the signal event of the day today. It may also be the signal event of the year, and even more than that if there is any significant change that results.

Federal Reserve policymakers remained cautious on growth even as they marked up their forecasts at the past meeting – with some officials favouring increased asset purchases to speed recovery, minutes revealed

Richard Suttmeier submits: The Fed says that a zero percent funds rate is needed for an “extended period.” The Fed shares my concerns on housing and job creation, with housing starts at depressed levels. Treasury Secretary Geithner has overly optimistic growth and job creation, which does not jive with the FOMC or me. The weekly chart for the Dow shows the upside potential in an overvalued market. Continued Mixed Message from the FOMC Meeting

Richard Suttmeier submits: Improved NAHB Housing Market Index, but the reading remains depressed. TARP Dividend Payments were due on Monday, May 17th. Risk Aversion continues but was giggled by a euro rebound. Complete Story »

Tom Lydon submits: In the wake of the “flash crash” on May 6, the SEC has been testing new rules aimed at preventing a repeat. Now stock exchanges want those new rules to be extended to ETFs, as well.

Michael Steinberg submits:The National Association of Realtors’ (NAR) August 24 press release, “July Existing-Home Sales Fall as Expected but Prices Rise”, along with The Wall Street Journal’s inside look at the August 10 Federal Reserve’s “contentious meeting”,

Richard Suttmeier submits: Lower US Treasury yields are a sign of Risk Aversion. The Fed will keep the Federal Funds rate at zero to .25% Wednesday afternoon. The S&P / Case-Shiller Home Price Indices gets dicey. Comex Gold is becoming a Currency of Last Resort, as Nymex Crude Oil loses MOJO as an economic warning. Thoughts on Goldman CEO Blankfein with regard to Market-Making. The daily chart for the Dow and re-iterating my market call.